It’s a new year, a new decade and 2020 is set to launch a new era in motoring with electric vehicle (EV) sales on a charge.
2020 is being heralded as the year of the electrified car, particularly zero-emission battery-only models, with attractive tax breaks for company car drivers, more affordable models and potential battery ranges approaching 300 miles on a single charge.
Credo Asset Finance is already a leading light in the finance sector when it comes to funding electric vehicles. And it is about to play a big role in helping businesses and individuals switch to electric cars and vans, the latter ideal for urban driving and deliveries. Finance packages can also include the cost of fitting faster chargers at home or business premises.
Business Development Manager, Lewis Buckley said Credo Asset Finance was one of the few finance companies which could offer personal contract purchase (PCP’s) on electric vehicles which many other lenders shied away from.
With EV technology moving quickly, many drivers choose to take the leasing route to give them more financial security and being able to budget with monthly payments, helped by increasingly strong residuals on used hybrids and EVs, over a set term.
“We can do PCPs in personal names or balloon products for businesses, who can also have electric vehicles on a lease.”
Electric cars will become more popular with business users from the new financial year in April, as EVs with zero emissions will qualify for 0% benefit-in-kind tax liability in 2020-21 for company drivers.
“Over the last six months we have seen more people asking about financing electric cars,” said Lewis.
“We are also refinancing balloon payments for people coming to the end of a PCP agreement on an electric car. Now people who have had EVs on three and four-year PCPs are deciding to settle the final balloon payment and buy them outright.”
But there aren’t many asset finance companies willing to do that because they don’t have access to the range of lenders Credo has.
Some are not keen about refinancing optional balloon payments at the end of PCPs, preferring to stick to hire purchase (HP) but Credo has the advantage of offering its own book finance so can be more flexible.
Marketing manager Fran Brown said: “Before you take a finance deal from the dealership come and see us and give us a chance to quote.
“Don’t automatically take up a quote. Come to us and find out what the alternatives are. Our responsible lending is always geared to the individual’s needs and no two people are the same.”